Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. That said, here are two high-flying stocks to hold for the long term and one where the price is not right.
One High-Flying Stock to Sell:
Golden Entertainment (GDEN)
Forward P/E Ratio: 38.1x
Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Do We Steer Clear of GDEN?
- Sales tumbled by 2.5% annually over the last five years, showing consumer trends are working against its favor
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.3% for the last two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Golden Entertainment’s stock price of $28.10 implies a valuation ratio of 38.1x forward P/E. If you’re considering GDEN for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
Astronics (ATRO)
Forward P/E Ratio: 31.1x
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Will ATRO Outperform?
- Annual revenue growth of 12.9% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 10.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $75.90 per share, Astronics trades at 31.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
StepStone Group (STEP)
Forward P/E Ratio: 24.4x
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Should STEP Be on Your Watchlist?
- Annual revenue growth of 43% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 41.7% annually over the last two years, massively outpacing its peers
StepStone Group is trading at $56.60 per share, or 24.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
